Tuesday, 29 April 2014 14:49

Dimension Data ‘to quadruple data centre business’ by 2018


Dimension Data says it intend to grow its expanding data centre business fourfold over the next five years. It is a billion dollar business now.

The global data centre market is expanding, driven by greater use of cloud services as Software as a Service. Services company Dimension Data currently gets nearly 20% of its US$5.8 billion global revenue from 12 data centres around the world – about $1 billion.

It wants to increase that to $4 billion by 2018. It says is looking to “aggressively grow and scale these businesses both organically and through acquisition.” In addition, Dimension Data believes its access to a significant set of data centre assets across its parent company, Japan’s giant NTT Group, differentiates it from its competitors.

“In all regions and with all clients, large and small, there is an urgent need to undergo a transformation process,” said Steve Joubert, head of the company’s data centre business. “Transformation is needed to not only achieve better data centre performance and manage disruptive technologies, but also to become progressively greener, in terms of environmental custodianship.

“Although all our markets are targeting exponential growth, our analysis shows there’ll be higher rates of growth in mature regions such as Europe and North America, given the legacy data centre investments in those geographies that require transformation. For many organisations, the most cost effective way of navigating the future will be through IT-as-a-Service, managed services, and outsourcing.”

Joubert says that cloud, virtualisation and ‘software-defined everything’ have changed the data centre landscape forever. “New workloads, users, connected devices, and locations are compounding the pressure on the data centre.

“Our clients are asking for help in dealing with all of this in a way that helps their data centre become a true business response centre, capable of being agile and speedy when the business needs it to be.

“Getting there requires an integrated approach in the secure delivery of workloads and applications across the traditional data centre, cloud and the enterprise network, all of which make up the next-generation data centre.

“This calls for a level and range of capabilities that the average organisation doesn’t have and shouldn’t need to build or acquire when all the considerable benefits of cloud, networking, security, and systems integration experience as well as economies of scale and a global footprint are available through Dimension Data.”

Currently Dimension Data operates 12 public cloud locations around the world and further locations coming online later this year. Dimension Data extends its cloud locations through its OneCloud partners, giving it what it says is one of the largest cloud footprints in the world.

“Our parent company NTT is the world’s second largest provider of data centre space, with 243 data centres globally,” said Joubert. “We have access to NTT’s application and workload capabilities in services around SAP, for example, and to the 6,000 engineers in NTT facilities who have built some of the most advanced data centres in the world.

“This, coupled with our investment in people, process, and management capabilities focused on managing the next-generation data centre, gives us a massive advantage in the market.”

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Graeme Philipson

Graeme Philipson is senior associate editor at iTWire. He is one of Australia’s longest serving and most experienced IT journalists. He is author of the only definitive history of the Australian IT industry, ‘A Vision Splendid: The History of Australian Computing.’

He has been in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time weekly IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.

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